Land Loan Calculator
Calculate your land loan monthly payment, total interest paid, and true all-in cost of purchasing raw land, rural property, or a building lot — including closing costs and a complete amortization schedule.
Land Purchase Details
Loan Details
How to Use the Land Loan Calculator
- 1
Enter the land price and your down payment percentage. Land loans typically require 20% to 50% down depending on the land type. Raw undeveloped land requires the highest down payment while construction-ready lots may qualify for lower down payment requirements.
- 2
Select your land type. This affects typical rate ranges shown in the tooltips. Raw land carries the highest rates because it is the hardest collateral for lenders to resell. Improved land with utilities and road access qualifies for better terms.
- 3
Enter your interest rate and loan term. Land loan rates are typically 1% to 3% higher than standard mortgage rates. Most land loans have terms of 5 to 15 years. Enter your closing cost percentage to see your true all-in purchase cost.
- 4
Click Calculate to see your monthly payment, total interest, complete amortization schedule, and true all-in cost. Download the free PDF to share with your lender or real estate attorney.
Example Land Loan Calculation
Scenario: Land Price $150,000 | Down Payment 30% | Land Type: Raw Land | Closing Costs 2% | Rate 8.5% | Term 15 years
- Down Payment (30%): $45,000.00
- Closing Costs (2%): $3,000.00
- Loan Amount: $105,000.00
- LTV: 70.00%
- Monthly Payment: $1,033.98
- Total Interest: $81,115.78
- True All-In Cost: $234,115.78
- Payoff Date: March 2041
"In this example, your total monthly cost is $1,033.98. By the end of 15 years, you will have paid over $81,000 in interest — nearly 80% of the original loan amount — reflecting the higher interest rates typical of raw land financing."
Frequently Asked Questions
What is a land loan?
A land loan is used to purchase a plot of land without an existing structure. Unlike a mortgage where the home itself serves as strong collateral a land loan is considered riskier because vacant land is harder to sell quickly. This results in higher interest rates — typically 1% to 3% above conventional mortgage rates — larger required down payments of 20% to 50% and shorter loan terms of 5 to 15 years.
What down payment is required?
Down payment requirements vary significantly by land type. Raw undeveloped land typically requires 30% to 50% down because it carries the most lender risk. Improved land with utilities and road access may require 20% to 30%. Construction-ready building lots can sometimes qualify for 20% down especially with local community banks or credit unions.
Raw land vs. Improved land?
Raw land has no utilities, roads, or infrastructure and is the hardest type to finance. Improved land has some infrastructure such as electricity, water, or road access but no structures. Building lots are parcels that are fully permitted and ready for construction — often in a subdivision with all utilities available at the lot line.
Where can I get a land loan?
Not all lenders offer land loans. Your best options are local community banks and credit unions which are more familiar with land values in your area. The USDA Farm Service Agency offers loans for agricultural land. Seller financing is also very common for land transactions especially in rural markets.
Disclaimer: This report is generated for informational purposes only. TheCalcTool is not a licensed financial legal or tax advisor. Land loan calculations are estimates based on the inputs provided assuming a fixed interest rate and equal monthly payments. Land loan rates and terms vary significantly by lender, land type, location, and borrower qualifications. Raw land and rural property loans are considered higher risk by lenders and may require larger down payments and carry higher rates than improved lots. Please consult a qualified mortgage professional or bank before making any land purchase decisions.